Sage 50 Accounts - Opening Bank Account Balance Posted to Nominal 9998 Suspense Account
I'm a partner in a 4 member partnership (not limited) and I'm currently in the process of preparing the accounts for the period 1st May 2013 to 30th April 2014 (so far).
It's a long story but basically I don't have last years accounts available but I do have everything I need to produce this years accounts (bank statements, customer records, expenditure, etc).
The partnership has two bank accounts;
1. Current account with an opening balance of £748.88 credit
2. Loan account with an opening balance of £595,050.20 overdrawn
First question, do I post the opening balance with a date of 30/4/13 or 1/5/13?
The loan account balance was originally (back in 2006) approx £800,000 overdrawn and was basically a loan to purchase a commercial building. The loan is on a repayment basis. A payment of approx £6700 is transferred from the current account to the loan account each month via direct debit. Of the £6,700, approx £1,000 is interest which is debited from the loan account and the balance of approx £5,700 is deducted from the loan account balance.
On Sage I account for the £6,700 payment by doing a bank transfer from the current account to the loan account. I then do a bank payment from the loan account to nominal 7903 'loan interest paid'. Is this correct?
Sage has posted the opening balance of the two accounts to 9998 'suspense account' which is in turn showing on the profit and loss. How do I correct this? Ideally, I assume I need the loan account to be classed as long term liability on the balance sheet.
Finally, I need to add the commercial property to the balance sheet as a fixed asset. I would normally debit 0015 'leasehold property' and credit 2330 'mortgages' but again I need advice as it doesn't seem to make sense in this situation considering the loan account is being treated as the mortgage?
I feel like I'm missing something really simple here...
Thanks in advance, Michael.
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